Well, from the sounds of things, it'll clearly have to come apart to see what happened. I've run across a number of Legacy locomotives recently that had either pinched wires or wires tightly bent around something sharp that have shorted and smoked. In those cases, it's frequently necessary to fix the wiring and most likely replace the board. The modern Legacy stuff is very unforgiving about having things grounded to the frame. FWIW, MTH PS/3 has the same issue, grounds are almost always a very bad thing.
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